About Planned Costs on a Job

On the job costing reports, the planned cost consists of the cost figures described in this topic.

Material Cost

If material is Per Unit: (job qty Released * material qty per assembly / (1 - scrap factor)) * material unit cost

If material is Per Lot: (material qty per assembly / (1 - Scrap Factor)) * material unit cost

Material overhead is calculated the same regardless of the material's type.

Fixed Material Overhead: Material Cost * material Fixed Overhead rate

Variable Material Overhead: Material Cost * material Variable Overhead rate

For each operation, the system calculates the planned setup hours and then the planned setup cost and labor overhead associated with setup.

Setup Time: (Setup Hours / Efficiency)

Setup Cost: Setup Time * Setup Rate

Fixed Setup Overhead: Setup Time * operation Fixed Labor overhead rate

Variable Setup Overhead: Setup Time * operation Variable Labor overhead rate

For each operation, the system calculates the planned run time and then the planned run cost and run labor overhead.

Labor Time: job quantity Released * (operation Labor Hours Per Piece * Quantity Resources)

Run Cost: Labor Time * operation Run Rate

Fixed Overhead: Labor Time * operation Fixed Labor overhead rate

Variable Overhead: Labor Time * operation Variable Labor overhead rate

For each operation, the system calculates the planned machine time and then the planned machine overhead costs:

Machine Time: job quantity Released * (operation Machine Hours Per Piece / Efficiency)

Machine Fixed Overhead: Machine Time * operation Fixed Labor overhead rate

Machine Variable Overhead: Machine Time * operation Variable Labor overhead rate